Amerisur Resources is exploring for oil and gas in South America, currently in Colombia and later it plans to exploit its licences in Paraguay. It has a new Board of Directors and following a recent Placing at 6p (250m shares) sufficient cash to see through its current drilling plans and carry out some further corporate asset improvement opportunities.

Valuation of Amerisur Resources : 'Rule of Thumb' based on c.800m shares and using 10% DCF on oil at $70/barrel is 0.75p on the sp for every 1m barrels (CHP's share) that is proved in the ground.

Amerisur (formerly Chaco Resources) now has two exploration blocks in Colombia which it is currently evaluating and preparing to drill, one of these in the last quarter of 2007. It has also applied for further blocks in Colombia which are also believed to offer near term production. It also has three substantial areas in Paraguay and is awaiting news on a fourth. The next six months (May-November 2008) should see a steady news flow as it establishes the companys transformation from being an exploration company to becoming a significant oil production company. Set out below are some of the milestones which should produce announcements and have a positive effect on the share price. Any potential reserves are quoted in recoverable oil assets.



Platinillo, Colombia :

100% interest in a field currently assessed at holding 38.1m barrels of light sweet crude oil. Previously this a well flowed at 533 b/d before it was capped.Modern extraction methods may achieve up to double this output/well. Drilling completed for assessment and details of reserve figures and resumption of production daily figures awaited at Dec.2009. (Some guessestimates suggest the field might contain as much as 70m-100m barrels.)

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Tigra/Fenix block

100%% Further 3D seismic is completed; previous drilling has resulted in 30,000 barrels of oil from this block. Other blocks nearby in the Magdalena basin have also produced well. Drilled 11/2009; optimistic RNS (17 leads to follow)but reserve figures awaited

RNS :Expect further news on this block imminently and maybe a JV or other arrangement to speed up the timescale to production



Additional blocks to be announced

New local management team, in particular the CEO, is reputed to have some excellent contacts which will bring some high quality blocks to Amerisur in the coming months.

Curupayty Block, Paraguay :

1.39m hectares in north, close to Bolivia. Two wells previously drilled and both showed oil.

RNS : Expect JV with larger producer.



San Pedro Block, Paraguay :

1m hectares in south-east. Previous drilling showed oil.

RNS : Expect JV with larger producer.



Parana Basin, Paraguay :

Canindeyu block covering 1,789,000 hectares. Bordering Brazil. Oil field on Brazilian side already drilled. Chaco also expect to find oil and, at a deeper level, considerable quantities of gas. Chaco has obtained valuable historic seismic for re-evaluation.

RNS : Presidential Decree received 2/11/06.. Petrobras has announced its intention to increase substantially its effort to exploit Paraguay's hydrocarbons and has announced a farm-in on CDS's adjacent block. Possibility that they or another major will do likewise with Amerisur



Corporate Activity : The new Chairman is believed to have been brought on board to prove some or all of the existing Colombian assets and get these oil producing, arrange a JV on the Paraguayan assets before negotiating a sale of the company as consolidation of explorers in the region continues. An exit sp north of 1.00 over the next 12 months might be a reasonable target provided the drilling programme lives up to expectations, the price of oil remains at/above current levels and an approach is made for the company.

Nothing that was in any way inconsistent with last week's broker's report.

I feel that expectations were running high and the rns was nothing to write home about, so some profit taking took place.
2517

Profit takers yes - but let us not forget the may be more significant amount of buyers.

Annie / To be honest i am rather deflated but never surprised..How capricious and fickle we mere mortals that make up the investing community can be, ln the past i have seen small finds like this, which most importantly establish the existance of a petroleum system in play, become company makers. Anyone recall Emerald energy-quite ironically also operating in Columbia? And what was thier first strike ? Yes you guessed it -180bpdoe . As regards Amer s/p . While day traders muddy the waters , and a few quite rightly exploited the oppertunity of crystalizing profitl feel for the most part the expectations of many pi's were simply not met which begs the bigger question of what were their expectations? . What did they expect ? The moon on a stick ? Or perhaps a "jubilee" style strike spewing out 100,000 bpdoe of sweetest crude. l agree with B/D-Todays RNS was in line with what surely was the consensus of half sane opinion and anticipated . and at the end of the day AMER FOUND oil ! and can bank between 600k and 2 million dollara p/a .Small potatoes i appreciate-but to look at some of the sells one would think AMER had followed in true Chaco tradition and toally screwed up bringing in 2 dusters. .l feel they will regret selling at what i feel is the pre rns pychollogical support level of 15.75 but you pays your money and ect ect ,,,,,,, On a more positive note .The depth of the successful strike was at a level classed as very shallow showing a series of wells can be spudded and drilled rapidy in this prospect .............To be honest it is the prospects Wardle brings to the table that ultimately brought me into this stock, and ill wait until news of that becomes known before taking any action That and the fact that the existance of the Cusiana field in the llanloss foothills in Columbia which happens to be the 5th biggest producer of crude in the world ........and how could all of Columbias neighbors be either in OPEC or swing producers and yet Columbia devoid of oil . l think not..............................................................................Do please feel free to tell me how delluded i am...You wont be the first nor the last

TFC: Thanks for sharing your thoughts......a riveting read, as ever ! Bonne chance a nous tous.

The answer maybe from yon side. Small piece in the FT today re concerns over whether AMER will seek to raise additional equity to fund an accelerated drill programme.

[ TFC: Thanks for sharing your thoughts......a riveting read, as ever ! Bonne chance a nous tous. ]

TFC , you should write a book ......... lol

A placing would be timely - and at an interesting striking price?

SS: Personally would only find it "interesting" if it was at a premium !

Honestly cannot afford to buy any more, as already got more than I'm comfortable holding in one company, so a placing of no interest to this small investor sadly.

Tud: Snap !

SS / Considering the length of time you have held AMER you must have developed a real "feel" for this stock .But what are your personal thoughts reg yesterdays RNS ? .Do tell. l am personally quite upbeat in that it illustrates the existance of a shallow petroleum system in play . Now you talk of a placing which i think what with current data is a good idea; and in considering recent trading patterns that alone could go a long way in explaining the tardiness in current s/p; and l wouldnt be surprised in the least if it was struck at around the 16p level ,...lncidentally a nice buy of over a million yesterday at 16p .........16p being to my mind a psychological support line. Three times since shares mag chartist called Amer one to be shorted the bid has retreated to 15.75; and each time buyers have appeared driving it foreward.

re Shares mag - I think that they figured that just before the t/y/e some would be tempted to take profits so if they could inspire weakness in the sp coupled with that a shorter would do well. The weakness didn't materialise so that may indicate that as fast as anyone sold stock, a ready market existed.
As for my "feel" for this stock you are right about me holding this stock a long time. I hadn't reckoned on that being the case but I also hadn't reckoned on the lack of a coherent business plan until GC was appointed.
I wouldn't be surprised if any placing today might take place at an enhanced price particularly if those being asked to participate are shown what I think the company should be showing us very soon. There is a lot of confidence (and more importantly money) in one particular part of the City that says this is going to turn out very well. I believe that even though it has been a long wait - I doubt we have to wait too much longer.

The key to progress in the short term is going to be the result from the Iguasa test. Good flow rates, say 500bpd+, should stimulate some buying.

After that, it depends on when the company decides to make a statement re Fenix reserves. Not sure if this information will come at the same time as the Iguasa test result or not.

It looks as though a placing isn't going to happen, at least not for a while.

Yes BD. I think we would have heard something by now if that were to be the case.

The Astaire report indicated that a fund-raising was not required. But it also said that $25m drill programme was scheduled for the next six months. So, if there is to be no fund-raising then are they suggesting that that amount of cash can be generated from current projects by end of Q3?

There would have to be a serious ramping up of the production, or some of other source of revenue, if that were to be the case. Unless I have missed something, this is a big unanswered question.

It isn't clear from the broker's report whether the $25m accelerated appraisal programme for Plat and Fenix is going to happen, or might be going to happen.

However, it does state that the company is going to spend $5m doing 3D stuff on Plat between June and Sept, so management must be confident that the investment is worth it, since they seem to be a fairly thrifty bunch.

Must admit, I read it as an intent to speed things up - hence the funding issue being unclear. But either way you are right re their confidence in Plat/Alea. Same applies for Fenix imo.

Lot more to come here outside your above post BWD. Can't put a time frame on it
but be ready to stand by your beds.

Big boys well aware what Mr C's got here !

n r

Doesn't surprise me. Self funding oilexco with the proven, probable and possible assets that AMER is/has must be attracting some interest.